Even a cursory glance at the latest oil and gas news could leave eternal pessimists believing something is definitely afoot. In an industry characterized by at least half a dozen boom-to-bust-to-boom cycles over the last 40 some odd years, the latest signs would suggest the U.S. is again flirting with another boom. Reese Energy Consulting today is studying reports on the momentum now in full gallop after the fossil fuels industry last year was all but declared dead. Fast forward to 2021. The framework for a new boom came together early with oil and gas prices entering zoom mode, OPEC+ limiting exports, and financial discipline on full display. In its latest, quarterly energy report published this week, the Dallas Fed surveyed 150 oil and gas firms in Texas, southern N.M., and northern La., to measure current conditions. The oil production index increased from 16.3 in the same period last year to 35.0—the second-highest score in the survey’s history. The gas production index rose from 16 in 2020 to 35.0. As for the six-month outlook index? The highest score ever at 71.9. Let’s keep this train on track.
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